The rupee ended 10 paise stronger at 54.08 against the dollar due to capital inflows and firm domestic equity markets. The forex markets were closed yesterday on account of Shivaji Jayanti.
The domestic unit opened stronger at 54.10 from Monday’s close of 54.18 per dollar on account of fund flows into the market. Intra-day it moved in a narrow range of 54.20 and 54.03 against the greenback.
Positive expectations from the Union Budget, which is due on February 28, will continue to bring fund flows into the markets supporting the rupee.
Call Rates flat; G-Secs up
The interbank call money rates ended flat from Monday’s close of 7.95 per cent. Call money rates are indicative of inter-bank borrowing to meet their short-term requirements. A lower rate indicates higher liquidity in the financial system.
The 8.15 per cent government security, which matures in 2022, closed higher at Rs 102.24 (yield: 7.80 per cent) from its previous close of Rs 102.10 (yield: 7.82 per cent) on Monday.